Gujarat State Fertilizers & Chemicals Limited (GSFC)

Chemicals · Fertilizers & Agrochemicals · NSE · Updated 15 July 2026

₹159.32 ↓ 22.1% (1Y)

🎯 Key Takeaways

GSFC is navigating a structural transition marked by strong recent operational performance but increasing pressure on margins and strategic portfolio shifts. The company has demonstrated robust top-line growth and record profitability in its fertilizer segment, yet faces headwinds from volatile raw material markets and geopolitical uncertainties.
Revenue grew 6.8% QoQ to ₹2,814 in Q3FY25.
⚠️ Raw material cost volatility and geopolitical pressures could compress margins in the fertilizer segment, as explicitly flagged by management for FY27

Market Cap

₹6,774

P/E Ratio

12.3

Div Yield

0.00%

Promoter

0.0%

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📖 The Story

GSFC is navigating a structural transition marked by strong recent operational performance but increasing pressure on margins and strategic portfolio shifts. The company has demonstrated robust top-line growth and record profitability in its fertilizer segment, yet faces headwinds from volatile raw material markets and geopolitical uncertainties. Management is actively restructuring its subsidiary GPLCL by reducing its stake from 60% to 11%, signaling a strategic refocus on core fertilizer and industrial operations. This transformation phase reflects both opportunities in industrial chemicals and risks from subsidy timing and input cost volatility.

📰 What's Happening

In Q4 FY26, GSFC reported consolidated sales of INR10,945 crores (+15% YoY) and PAT of INR673 crores (+14% YoY), driven by record fertilizer sales of INR1,985 crores and 12% volume growth to 22.31 lakh metric tons. Industrial products delivered their highest quarterly EBIT in 10 quarters and annual profitability of INR200 crores. Capital expenditures of INR670 crores were completed to enhance operational efficiency. Management highlighted that FY27 Q1 fertilizer demand faces unsettled raw material markets and geopolitical pressures, while industrial segment margins are constrained by nylon 6 price pressures despite recovering caprolactam-benzene spreads. A board-level change occurred with the resignation of Executive Director S. V. Varma effective 28 April 2026, with a requested three-month transition period. Additionally, GSFC received Gujarat government approval to reduce its stake in GPLCL from 60% to 11%, pending further regulatory steps.

Source: Stock Announcements

📊 Quarterly Results (₹ Cr)

Metric	Q4FY23	Q1FY24	Q2FY24	Q3FY24	Q4FY24	Q1FY25	Q2FY25	Q3FY25
Revenue	2,384	2,063	3,119	2,008	1,965	2,163	2,635	2,814
Operating Profit	353	191	432	189	78	162	437	219
OPM %	13.7%	6.9%	7.6%	5.4%	1.3%	5.1%	10.8%	5.6%
Net Profit	225	112	309	118	23	87	298	134
EPS	₹5.65	₹2.82	₹7.75	₹2.97	₹0.63	₹2.19	₹7.60	₹3.36

GSFC's financial trajectory shows a clear inflection from volatility to growth, with revenue expanding from INR1,965 crores in Q4 FY24 to INR10,945 crores in Q4 FY26, and PAT rising from INR23 crores to INR673 crores over the same period. However, operating margins have fluctuated significantly, peaking at 13.7% in Q4 FY23 before declining to 1.3% in that same quarter, then stabilizing around 5-10% in recent quarters. The sharp improvement in profitability in FY26 was supported by volume growth and subsidy receipts, but management has explicitly flagged margin pressure risks in FY27 Q1 due to raw material cost volatility and subsidy timing. Despite strong top-line momentum, the decline in operating efficiency from Q2 FY25 (10.8% OPM) to Q3 FY25 (5.6% OPM) indicates increasing cost pressures that could challenge sustainability of earnings growth.

🔮 Management Outlook & What's Next

Management has indicated that FY27 Q1 fertilizer segment performance will be challenged by unsettled raw material markets and geopolitical pressures, with no assurance of margin recovery. In contrast, the industrial segment is expected to see mixed demand, with caprolactam-benzene spreads recovering but nylon 6 prices remaining under pressure. While specific forward guidance on margins or capex was not detailed in the latest filings, management emphasized the completion of INR670 crores in capital expenditures to enhance operational efficiency and positioned industrial products as a key growth driver. The company did not provide explicit revenue or profitability targets in the reviewed filings, but highlighted the importance of subsidy receipts and government gas prioritization in sustaining financial performance.

Extracted from official company announcements. Not StockFin.ai's opinion.

⚖️ Peer Comparison — Fertilizers & Agrochemicals

Company	MCap (₹ Cr)	P/E	ROCE	ROE	D/E
Fertilizers and Chemicals Travancore Limited	57,117	-630.5	—	—	—
Coromandel International Limited	55,044	33.3	—	—	—
UPL Limited	53,373	-157.3	—	—	—
PI Industries Limited	47,259	27.8	—	—	—
Sumitomo Chemical India Limited	22,898	44.4	—	—	—
Bayer Cropscience Limited	21,796	—	—	—	—
Chambal Fertilizers & Chemicals Limited	18,025	11.1	—	—	—
Paradeep Phosphates Limited	12,506	30.3	—	—	—
Sharda Cropchem Limited	8,742	35.8	—	—	—
Rashtriya Chemicals and Fertilizers Limited	6,876	25.9	—	—	—

🔗 Peer Stock Analyses

FACT COROMANDEL UPL PIIND SUMICHEM

⚠️ Risk Factors

1. Raw material cost volatility and geopolitical pressures could compress margins in the fertilizer segment, as explicitly flagged by management for FY27 Q1. 2. Subsidy timing and government policy dependence pose a structural risk to cash flow stability, despite current inventory levels being stable. 3. Leadership transitions, including the resignation of Executive Director S. V. Varma, may introduce short-term operational uncertainty. 4. Margin pressure in industrial products, particularly for nylon 6, could limit profitability gains even if spreads recover, due to pricing constraints.

📋 Recent Filings

🧠 Analyst's Read

GSFC is transitioning from a period of volatility to one of structured growth, underpinned by strong volume execution and record profitability in its core segments. However, near-term margin sustainability hinges on subsidy continuity and raw material stability, both of which remain uncertain. Investors should monitor management's ability to insulate margins from input cost swings and successfully execute the GPLCL stake reduction strategy, as these will shape the company's financial trajectory in FY27 and beyond.

Based on filing content and financial data. Not a recommendation.

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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-07-15.

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